What is the most flexible and affordable lending option for self-employed investors in Florida? Of course, this is the Stated Income Mortgage Loan Program. Under this option, you will not need to provide income documentation, tax returns, or bank statements on most transactions (refinances). Therefore, it is not surprising that today, this is one of the most popular real estate lending programs on the market. Mainly, this loan program attracts borrowers such as real estate investors, landlords, or self-employed people who want to buy property without having to deal with a lot of paperwork.
If you are one of these borrowers and want to avoid being involved in the complex bureaucratic process of applying for a mortgage loan, consider Florida No Doc Mortgages as well as No Income Verification Home Loans in Florida. Plus, the LBC Mortgage team will be by your side through this process—our experts specialize in the Sunshine State market and will help you find the best financing for your needs.
What is a Stated Income Loan in Florida?
A stated income loan in Florida is also called a no doc no income verification loan — essentially, it is a Non-QM loan, which allows you to obtain financing without having to qualify depending on their debt-to-income ratio. This loan option helps you get approved much easier than other programs. As written above, therefore, a stated income loan in Florida is attractive to business owners or real estate investors who can make it easier to achieve their goals. However, this type of lending is only available for investment properties and not primary residences.
Also, self-employed borrowers can benefit from stated income loans. Let’s take a closer look at the loan process so you can weigh the benefits and disadvantages and make an informed decision.
Stated Income Loan Qualification in Florida
So, what requirements will be presented to the borrower who plans to participate in this loan program?
- A down payment of at least 20% of the property value
- Three-month financial reserves — so the lender will be sure that you can pay the mortgage for at least three months
- Minimum credit score — 640
Also, if you received money to purchase real estate as a gift or earn income from the Airbnb service, then you can also take part in this loan program.
What are the Pros & Cons of a Stated Income Loan in Florida?
But everything can’t be that good, can it? Let’s assume that this is what you are thinking about now. Indeed, there are thousands of options when a Stated Income Loan in Florida will be the best loan choice for you — especially if you can’t quickly prove your income or provide a lot of documentation. But even this type of loan has its pitfalls — let’s take a closer look at its advantages and disadvantages. After all, there are scenarios when it is more profitable for you to consider a conventional loan.
Pros of Stated Income Loans:
- The loan does not have the same underwriting standards or deferments as an income-verified loan
- Financing for this loan usually takes place within a fairly short period.
- You get a fixed interest rate for the first three, five, seven, or nine years. Next, your interest rate fluctuates, and there is no penalty for refinancing into a new loan
- No bureaucratic red tape or stress for borrowers without regular income. In general, a Stated Income Loan frees you from the headaches associated with the underwriting process and all sorts of financial checks.
Cons of Stated Income Loans:
- Lenders rarely offer these loan programs, so you’ll have to go through a lengthy search process. Or, you can simply contact LBC Mortgage for help
- The borrower receives less favorable lending conditions. Among them higher mortgage rates than traditional loans. But remember that your credit score will determine everything, the amount of assets and information that you are willing to provide to creditors.
- Requirements for a high credit score and down payment. Borrowers need to have a score of around 700 and be able to afford a 20-30% down payment. But at LBC Mortgage, we offer borrowers more favorable conditions — a credit score of 640 and a down payment of 20%. Therefore, you know what to do with this information.
So, are you ready to get your quote?
Stated income loans are booming among investors or self-employed borrowers in Florida. Their simplicity and lack of bureaucracy attract many — therefore, we advise you to contact LBC Mortgage for details. Here, you can get comprehensive information about financing, as well as qualified assistance on the way to obtaining financing. Make up your mind! After all, traditional mortgages are becoming less and less attractive in our fast-paced world.